Two-thirds of the greenhouse industry is in the grey sector

According to experts’ estimates, Bulgarian producers of greenhouse vegetables have lost more than BGN 30 mln as a result of the Escherichia coli (E. coli) epidemic in Europe. At the same time, only 96 individuals and juristic persons have claimed compensations for damaged production worth BGN 5 mln at State Fund Agriculture - Payment Agency, said Plamen Sapundzhiev, Chairman of the Bulgarian Greenhouse Association (BGA). From this it canbe concluded that approximately two-thirds of the branch is operating in the grey sector, commented Sapundzhiev. According to his data, at least half out of the 6,000 dca of polyethylene greenhouses are operating without documents. Glass greenhouses occupy 4,000 dca and over 20% of them are illegal.

The European Commission (EC) has made a decision to compensate producers in the EU for the hysteria caused by the contagion. However, compensations will be paid only for destroyed production. Furthermore, not a single dime will be paid without presenting all documents for the sales a month back. The money is expected to be remitted to the accounts in mid-October, specified Plamen Sapundzhiev.

According to him, the crisis caught Spanish farmers at the end of their production season, but production in Bulgaria was at its peak then. The hysteria undermined trade in greenhouse products by 90% and within a single day prices fell from BGN 1 to BGN 0.20 per kilogramme, said BGA’s Chairman. On behalf of the organisation, he insisted that the State ensures BGN 10 mln in order to cover the price differences. Such a step has already been taken in Belgium and Denmark. There are various ways to provide the funds. The longest and most difficult way would be if the Ministry of Agriculture and Food requests the EC to notify for State aid. Therefore, the branch suggests using the mechanism applicable in cases of accidents and disasters.

If the State accepts the request for granting compensations for the collapse of prices as well, applications would be submitted by about 120-150 producers. However, if the damages are not assumed, a smaller amount of greenhouse production will be planned for the autumn and the domestic market will be further opened to imports.

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